Nine easy ways to lower your credit card debt

Watch those annual fees

Cards with annual fees often have lower interest rates, but do the math to make sure they're worth it. For example, if you carry a balance of $1,000 a month on a card with a 6.9 percent interest rate and a $50 annual fee, that's the equivalent of a no-fee card with a 12 percent interest rate.

Consolidate debt

If you're really in over your head, there are plenty of debt consolidation companies eager to help you.

Generally, they offer you one big loan — usually at a lower interest rate and with a longer payment schedule than your credit cards — to pay off your individual debts. They also act as your agent with your creditors, which means fewer unpleasant phone calls at dinnertime. And depending on the service, they may be able to help you get your credit rating back on track over time.

But this is definitely a case of buyer beware. Make sure you read the fine print, and ask yourself the all-important question: What's in it for them? Typically these companies charge such high fees that even if the interest rate on the loan is lower, you may end up paying out more money than if you were to tackle your debts individually.

Another caution: Some consolidation services present themselves as counselors, and their advice isn't always reliable. In some cases, people have ended up signing away their homes as security for a loan. Others have raided retirement accounts to make the payment to the consolidation agency.

If you want to consolidate your debt, opening a home equity line of credit or getting a second mortgage is an alternative to a debt consolidation service. Bear in mind, however, that this requires putting up your home as collateral. So you could lose your home if you make late payments or fail to make payments.

This Internet site provides information of a general nature and is designed for educational purposes only. If you have any concerns about your own health or the health of your child, you should always consult with a physician or other healthcare professional. Please review the Terms of Use before using this site. Your use of the site indicates your agreement to be bound by the Terms of Use.

This site is published by BabyCenter, L.L.C., which is responsible for its contents as further described and qualified in the Terms of Use.